Question

“Best Electronics’ started manufacturing washing machines under the brand name ‘Amaze’. Once the washing machines were ‘manufactured, packaged, branded, priced and promoted, they had to be made available to the customers at the right place, in the right quantity and at the right time. “Best Electronics’ provided for accurate and speedy processing of orders so that the washing machines reach the customers in time, in the right quantity and specifications. They also ensured that the washing machines are physically made available to the customers. Further, ‘Best Electronics’ arranged for facilities to store the washing machines at different locations near the market to minimize the charges on transportation.

Explain any three components of physical distribution discussed in the above case.

Answer 1

Components of Physical Distribution: The following components of physical distribution are discussed in the given case study.

1. Order Processing: The first or starting point of the distribution activity is order processing. Receiving orders, handling received orders, issuing credit for the item ordered, producing invoices, dispatching orders, and collecting bills are all functions involved in order processing.

   Businesses should strive to shorten the order cycle time between placing an order and receiving products at the customer's location.

2. Storage and Warehousing: Storage stores items in good condition until a consumer orders them. Goods that cannot be made available throughout the year must be stored.

   Warehouses serve as storage hubs, allowing firms to meet client demands. In addition to serving as a storage facility, a warehouse also serves as a centre for assembling commodities.

3. Transportation: Transportation is a critical component of physical distribution, as it facilitates the transportation of stored items from the warehouse to the client. Transporting involves the loading and unloading of things as well as their movement from one place to another.

   Choosing the proper means of transportation is critical since it impacts the selling price of the product. Valid transportation selection leads to the smooth transit of goods in good condition.

   Businesses use roads, trains, aircraft, water transport, and pipelines as forms of transportation. The mode of transportation chosen is determined by the sort of commodities being delivered, their availability, dependability, and the level of safety provided by the way.